Let’s get a few things straight about my real estate services. If you are looking to sell a large parcel of land, I am not your agent. I can refer you to the best agent in town for that, however. Luxury home buy or sell? Again, I’m not your man. My office does have probably the best REALTOR in town when it comes to luxury homes, though.
I am a Residential Investment Property Specialist. In 2006 75.4% of my business was working with folks like you looking to purchase or liquidate or exchange an investment property. (The other 24.6% was with “regular” home buyers and sellers. Fist time buyers are a blast to work with!)
It just drives me crazy to see some of the pricing of income properties here in the Kansas City area. Invariably when I’m speaking to the listing agent I will find out that the pricing is based on “comparables“. Well, that’s all well and good, but what does it have to do with whether or not a property will cash flow at the area’s going rate? What are the vacancies? Expenses? What is the landlord responsible for versus the tenants responsibilities? These are questions I’ll need to know in order to determine the Net Operating Income. (Will the property “pencil”?) And not just me, any experienced investor will want these numbers.
The long and the short of this post is to say this…If you are an income property owner looking to adjust your position in the market please interview your agent carefully. Figure out his/her expertise and base your decision on that. Not how cool their website it. Price is the single biggest factor in determining how and when a property will sell. And you know that. But what is the realistic price?
If you are an agent with someone asking you to list their rental property or help them find some either learn the numbers or refer the client to me and I’ll pay you a referral fee. After all, it would be in the best interest of your client, wouldn’t it?